A firm has outstanding debt with a coupon rate of 8%, seven years maturity, and a price of $1,000. What is the after-tax cost of debt if the marginal tax rate of the firm is 35%?
A) 5.2%
B) 5.5%
C) 5.7%
D) 6.0%
Answer: A
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The question has two parts; be sure to complete both. First, summarize Michael Porter's model for industry analysis, explaining each of the five primary competitive forces. Next, imagine you are the CEO of The Big Ram, a company that sells ramen noodles. Give an example of each of the five primary competitive forces in The Big Ram's environment.
What will be an ideal response?
Which population group is most likely to spread incorrect information?
A) Public affairs B) Trolls C) The misguided D) Unhappy customers E) Ragers
A study has been conducted to determine if one of the departments in Carry Corporation should be discontinued. The contribution margin in the department is $80,000 per year. Fixed expenses charged to the department are $95,000 per year. It is estimated that $50,000 of these fixed expenses could be eliminated if the department is discontinued. These data indicate that if the department is discontinued, the yearly financial advantage (disadvantage) for the company would be:
A. $15,000 B. ($30,000) C. ($15,000) D. $30,000
We will accept the recommendation of ____ you support
A) whoever B) whomever